Equity value – Knowledge and References

Equity value

Equity value refers to the value of a company's equity, which is calculated by subtracting the total net assets or book value of its equity from its stock market value, private equity value, or venture capital value, including contract-rights. This value may be adjusted by adding any non-airline assets and minorities, and then divided by the number of shares issued to determine the value per share of the equity. Equity side financial multiples use the firm's equity value as the numerator, while asset side financial multiples use the enterprise value (EV).From: Earnings Management, Fintech-Driven Incentives and Sustainable Growth [2019], Airline Finance [2019], M&As and determinants of financial multiples in shipping: the European ro-pax and ferry market [2023]

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inefficient resource-allocation implications

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Purchase Book

Published in Michael I. C. Nwogugu, Earnings Management, Fintech-Driven Incentives and Sustainable Growth, 2019

Michael I. C. Nwogugu

Here, the values of Intangibles are measured as: i) the difference between the company’s stock market value (or private equity value or Venture Capital value) on one hand, and its total “Net Assets” or the Book Value of its equity; and including contract-rights; etc.; or ii) the estimated market values of the company’s intangible assets in a non-distress non-liquidation sale.

M&As and determinants of financial multiples in shipping: the European ro-pax and ferry market

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Journal Information

Published in Maritime Policy & Management, 2023

G. Satta, F. Avallone, L. Persico, F. Parola, F. Vitellaro, C. Di Fabio

Figure 6 stresses the differences in the average values of financial multiples for the most represented countries. The UK shows the highest Implied Enterprise Value/Revenues (5.20) and Implied Enterprise Value/EBITDA (i.e. 14.15), whereas Germany reaches an Equity Value/Book Value of 9.63 which is much higher than the average of the sample (2.93).